Anthony Chisholm (Queensland, Australian Labor Party, Assistant Minister for Education) Share this | Hansard source

I thank senators for their contributions to the debate on the Infrastructure Australia Amendment (Independent Review) Bill 2023. Infrastructure Australia was created by Labor to provide expert advice to government regarding infrastructure priorities across the nation. Under the Liberals and Nationals, the organisation was left to drift, with partisan board appointments and a lack of clear direction. This is why, during the election campaign, Labor committed to an independent review of Infrastructure Australia.

On 22 July 2022, the government appointed Ms Lockwood and Mr Mike Mrdak AO to commence the review, and on 8 December that year the government released the report and the Australian government response. This bill will implement part of the government response to the independent review, to ensure IA is the independent adviser to the Australian government on nationally significant infrastructure investment. The bill provides Infrastructure Australia with a clear purpose and streamlined functions that align with the government's strategic infrastructure priorities. It will promote harmonisation of evaluation processes across jurisdictions and remove duplicative processes, acknowledging the existing assessment frameworks and capabilities of the states.

The bill will also implement a new streamlined governance structure for IA, comprising three expert commissioners in place of the board. An updated statement of expectations will also be issued, to provide IA with guidance on implementing most of the remaining recommendations of the independent review.

The bill introduces a new object to the Infrastructure Australia Act 2008 that identifies Infrastructure Australia's mandate as the Commonwealth government's independent adviser on nationally significant infrastructure investment planning and project prioritisation. Infrastructure Australia's functions and product suite will be more focused, including developing a smaller, more targeted infrastructure priority list that prioritises nationally significant infrastructure proposals for consideration by the federal government.

The bill will help reduce duplication with the states and territories by requiring IA to develop a nationally consistent framework for evaluating infrastructure proposals and enabling Infrastructure Australia to endorse project evaluations conducted by state and territory governments. The bill will identify that Infrastructure Australia's functions are to be guided by the Australian government's infrastructure investment objectives and strategic priorities, which may be directed in a public statement.

Infrastructure Australia will be governed by three commissioners, including a chief commissioner and a chief executive officer. The commissioners will be the accountable authority and will be appointed by the responsible minister based on their expertise, skills, experience and knowledge; gender; and geographical representation. The CEO is appointed by the commissioners. Along with a new provision to undertake inquiries into matters relating to nationally significant infrastructure, the commissioners will be able to examine and report on the complex ecosystem for nationally significant infrastructure in an integrated way.

The bill will ensure that Infrastructure Australia is empowered to carry out its role as an independent and expert adviser to the Australian government on nationally significant infrastructure needs and priorities, including investment in transport, water, communications and energy. It will refocus IA to provide important and strategic advice to the Australian government. Infrastructure Australia will provide relevant and timely expert advice to the Australian government on infrastructure, planning and project prioritisation that has appropriate regard to the government's infrastructure investment policies and objectives. The new governance model will ensure that Infrastructure Australia has the eminence, authority and standing to be a national leader and coordinator among infrastructure advisory bodies.

When Infrastructure Australia was established by the now Prime Minister, it was created in an apolitical way and led by an expert board headed by Sir Rod Eddington. Infrastructure Australia was created to take politics out of major projects and to create clear guidance on what government and industry need to invest in and when those investments should be made. The former Labor government listened to Infrastructure Australia and invested in every one of its priority projects. All of this changed under the previous government. They destroyed Infrastructure Australia as a major economic body and instead used it as a vehicle to give jobs to their mates. They ignored Infrastructure Australia's priority list and instead invested in imaginary car parks rather than major projects that would lay the foundations for the nation's future economic growth.

Government infrastructure investment decisions will be informed by independent expert advice from Infrastructure Australia. It's advice that will be more targeted to the government's needs by aligning Infrastructure Australia's mandate and product suite with the government's policy objectives. The changes made to the bill will require Infrastructure Australia to develop a more targeted product suite that has regard to the government's infrastructure investment policies and objectives. Changes to IA's governance arrangements and candidate selection process, along with the establishment of an advisory council, will increase the expertise and standing of Infrastructure Australia. Giving Infrastructure Australia a more central role in informing government decisions, such as through the budget process, ensures that Infrastructure Australia's work is more closely embedded into government processes, which has not been the case in recent times.

In terms of what the bill will do, it introduces a new object into the Infrastructure Australia Act 2008 that identifies Infrastructure Australia's mandate as the Commonwealth government's independent adviser on nationally significant infrastructure investment, planning and project prioritisation. It will be more focused and will include smaller, more targeted infrastructure priority lists that prioritise nationally significant infrastructure investment proposals from Australian state and territory governments. The bill will enable Infrastructure Australia to endorse the work of state and territory infrastructure bodies' project evaluations, thus reducing duplication and uplifting jurisdictions to a nationally consistent approach. The bill will also identify that Infrastructure Australia's functions are to be guided by the Australian government's infrastructure investment objectives. IA will be governed by three commissioners and a CEO. The commissioners will be the accountable authority and will be appointed by the responsible minister, as I mentioned before. The bill will ensure that Infrastructure Australia is empowered to carry out its role as an independent adviser.

In summary, these changes will remove unnecessary processes and build on the strong relationships with states and territories, which will harmonise processes, leading to better advice and recommendations. Importantly, Infrastructure Australia will maintain its independence, ensuring that it continues to provide impartial advice to the Australian government, particularly on infrastructure project selection and prioritisation for investment in projects needed the most. The new governance model will ensure Infrastructure Australia has the eminence, authority and standing to be a national leader and coordinator amongst infrastructure advisory bodies. The three commissioners will collectively have strong and relevant expertise and be responsible for the delivery of Infrastructure Australia's functions. Whilst this bill implements the recommendations of the independent review of Infrastructure Australia requiring legislative changes, a new statement of expectations will be issued to Infrastructure Australia to implement the remaining recommendations of the review. Together these changes will re-establish Infrastructure Australia as the Commonwealth expert adviser on infrastructure of national significance. I would again like to thank senators for their constructive contributions in consideration of this bill. I commend the bill to the chamber.

Question agreed to.

Bill read a second time.